Snap-O Fact #89

According to CBS News, “The proposal would expedite the timeline for an already-approved loan repayment plan that would lower monthly federal student loan payments for Americans whose burden of debt is disproportionate to their earning abilities.” In addition, according to the original plan, “borrowers would be able to reduce their monthly payments from fifteen percent to ten percent of their discretionary income as of 2014.

Additionally, the plan dictated that the balance of borrowers' debt would be forgiven after 20 years of payments rather than in 25 years. The president said he would use an executive order to make those benefits available to borrowers as early as 2012. The plan will also decrease interest rates in student loans in order to help millions of American college students achieve their education

The cost of higher education continues to rise. Today's level presents roadblocks that prevent millions of bright university candidates from completing their education. An educated populace is one of the fundamental walls in the foundation of a strong America. The President has always promised that he would address this challenge. The result is an innovative program to assist good students to earn their degrees. The USA Today reported that student loans will reach $1 trillion before the end of 2012. President Obama emphasized that he would do whatever he could to ease the problems recent graduates face to pay back their federal college loan. Specifically, the President announced the innovative “Pay-As-You-Earn” plan.